HOEPA & customer signatures

Question: The model form for HOEPA disclosures does not have a line for signatures. Is it a requirement to get the customer's signature on the form?

Answer: The rule does not contain a requirement that the customer sign a copy of the disclosure to prove receipt of the disclosure. However, high-cost loans are very sensitive subjects and you should realize that you will be held to a high standard of proving compliance. Getting the applicant's signature is one sure way to do this.

Don't forget that there are situations that do require signatures. These include rescission and acknowledgment of receiving revised or changed disclosures by telephone. If you provide updated disclosures by phone, be sure to document that process.

Copyright © 2002 Compliance Action. Originally appeared in Compliance Action, Vol. 7, No. 14, 12/02